The rig count has rebounded from the lows seen in late May, a small indication that oil companies in the U.S. could begin drilling anew.

Oilfield service companies have gutted their payrolls and warm or cold stacked rigs and equipment (temporarily or more permanently idling rigs). An estimated 350,000 workers have been laid off in the oil industry around the world, and the rig count in the U.S. is a tiny fraction of what it was two years ago.

Costs could rise as drilling resumes – both wages and rig rates could see upward pressure as activity picks up.

(Thanks to GRC Member Marcelo Lippmann, Staff Scientist (retired) at Lawrence Berkeley National Laboratory for the submission.)